Hanwha’s TransGrid Energy secures over $1.4 billion in financing for a 450 MW/1,800 MWh portfolio of stand-alone battery storage projects in Arizona

TransGrid Energy LLC, a leading owner and operator of utility-scale renewable energy projects under Hanwha FutureProof, has successfully secured over $1.4 billion in financing. This includes $705 million in debt financing, a $270 million tax equity financing commitment, and a tax credit transfer transaction of up to $490 million, finalized in December 2024.

The company will use the capital raised from these transactions to fund construction of two utility-scale, stand-alone battery storage facilities, the Atlas VII and Atlas IX projects, located in La Paz County, Arizona. With a combined capacity of 450 megawatt/1,800 megawatt-hours, the projects will support grid stability and reliability for energy customers of California. Both projects are under construction by Qcells USA, an industry-leading EPC company, and will achieve commercial operation later this year. In California, these projects will provide capacity and energy to support grid resilience through 15-year Resource Adequacy contracts with Southern California Edison.

To finance the $705 million in project loans, TransGrid assembled a bank consortium led by Société Générale and Santander in their capacity as lead arrangers, which includes, in addition to Société Générale and Santander, BNP Paribas, Banco Bilbao Vizcaya Argentina, East West Bank, Shinhan Bank, Siemens Financial Services, and Associated Bank.

The financing package also includes a $270 million hybrid tax equity commitment from an affiliate of a major financial institution and a transfer transaction with a tax credit purchaser for the sale of up to $490 million in investment tax credits to be generated by the projects.

“This successful closing of $1.4 billion portfolio financing demonstrates the commitment and execution capabilities of TransGrid to advance and deliver 1,800 MWh of battery storage facilities that will support reliability and stability in the California Independent System Operator (CAISO) market,” said Sean Park, President of TransGrid. “We are grateful for the strong support from our financing partners and look forward to expanding our partnerships to strengthen critical energy infrastructure across the country.”

“Société Générale is committed to advancing the global green energy transition and to helping the U.S. reach its net-zero carbon emissions targets,” said Sang Joon Lee of Société Générale’s Energy Plus Group. “We recognize the vast economic potential of the battery market as one of the fastest growing sources of power in CAISO and are thrilled to partner with top tier developers like TransGrid as they continue to lead the growth of renewable power generation.”

“Santander congratulates the TransGrid team on the Atlas VII and Atlas IX projects’ successful financial closing in a critical and growing energy market,” said Andrew Platt, Head of Structured Finance and Advisory at Santander Corporate & Investment Banking. “We are committed to partnering with companies like TransGrid to propel the grid’s adoption of clean energy resources. We enjoyed working with all those involved and look forward to supporting TransGrid’s continued success.” 

Hanwha FutureProof

Hanwha FutureProof is a U.S.-based investment company headquartered in New York, established by Hanwha Group in 2023 to proactively respond to the growing global demand for energy sustainability. A joint venture investment platform equally owned by Hanwha Solutions and Hanwha Aerospace, FutureProof pursues strategic investments in battery energy storage systems (BESS), LNG infrastructure, next-generation transition fuels, clean energy maritime solutions, and aerospace. It currently operates its investment portfolios through two subsidiaries: TransGrid Energy, based in Irvine, California, which manages BESS assets, and Hanwha Shipping Co., headquartered in Houston, Texas, which oversees vessel charter operations. Leveraging the expertise built by the Hanwha Group portfolio of businesses in the global market, FutureProof directs investments across key sectors, advancing U.S. sustainability and energy transition efforts.

For more information, visit: https://hanwhafutureproof.com

TransGrid Energy

TransGrid Energy LLC, a wholly-owned subsidiary of Hanwha FutureProof, invests, owns and operates battery storage and solar projects across the United States that will drive the shift to a clean energy future. TransGrid leverages its deep renewable energy expertise, proven project execution capability, and significant capital to usher in the era of clean, reliable energy. Founded in 2023, TransGrid currently has almost 3 GW of under construction and advanced-stage development storage and PV projects in the key US energy markets. As a member company of Hanwha Group, a global leader in renewable energy solutions, TransGrid is committed to providing sustainable energy solutions.

For more information, visit: https://transgridenergy.com/

Qcells USA 

Qcells USA provides complete utility-scale turnkey solutions through the entire project lifecycle from modules, solar and energy storage project development, and Engineering Procurement and Construction (EPC) services to the U.S. utility-scale market. With a track record that includes 8.4 GW of sustainably produced module manufacturing capabilities in Georgia and nearly 2 GW of developed, constructed, and operating projects, Qcells USA is a dependable partner throughout the entire project lifecycle. Qcells USA is a flagship company of Hanwha Group, a FORTUNE Global 500 firm and a Top 7 business enterprise in South Korea.

For more information, visit: www.qcellsusa.com